The real estate market in London, Ontario is on fire. In fact, the average selling price is up more than 40 percent over the past year. The result of this rapid growth is that the average home now sells for approximately $640,000.
However, this price growth is problematic for middle-class Canadians. The market’s dynamics are leaving many wondering whether renting is a better option. Regardless of your decision, London Ontario movers are going to be necessary.
Read on to learn whether you should rent or buy. Explore topics such as homeownership, the benefits of rental agreements, and the best moving companies near London.
What Are the Benefits of Buying?
Building equity is the number one benefit of buying in London. By taking an ownership stake in the London real estate market, you get to ride this price surge.
Homeowners are directly benefitting from the rapid surge in home prices. Their net worth is increasing in parallel to the real estate market. They can tap into the equity for home projects or sell their home to liquidate it into cash.
What Are the Benefits of Renting?
The London real estate market is pricing out many middle-class Canadians. They simply cannot keep up with the accelerating prices. Monthly mortgage payments are rising with home values.
Another issue for the middle class is affording the down payment. The minimum down payment on a $500,000 house is five percent.
This means that you have to put $25,000 down to get approved for a mortgage. Many people do not have this type of cash flow lying around.
Home maintenance is another benefit of renting. When something breaks, the property manager is responsible for fixing it. This means when the heating system fails, you are not financially liable for its repair.
What Are Other Expenses to Consider?
When you make the decision to rent or buy, there are a number of other expenses to consider. For starters, you need to pay various closing costs to finalize a mortgage.
This includes hiring a lawyer to review important legal documentation for homeowners. You also need to arrange for a home appraisal to determine the property’s comparative value.
Another expense to consider is the home inspection. You will want a certified home inspection to comb over the property and ensure there are no major issues.
Homeownership involves maintaining your new property. When an appliance breaks or there is a leak, you are responsible for fixing it.
Whether you are renting or buying, hiring a moving company is another factor to consider. Professional movers help remove and transport your heavy furniture from a prior residence. This way, you can focus on signing the rental agreement or attending the closing.
Rent or Buy in London Ontario?
Each person has different financial considerations to make. There is no right or wrong answer in the rent vs. buy debate.
Buying a home is a great way to build equity and net worth. Renting is a strong option for those without the cash flow to make a down payment.
Also, make sure to consider other expenses like movers when reaching a decision. If you are looking for London Ontario movers, contact us today to speak with a sales associate.